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The latest news and events at Maples Teesdale

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Renters' Rights Bill - An Update

Following the brief analysis I shared back in October of 2024, the Renters’ Rights Bill has since made steady progress. Having passed its second reading in the House of Lords (though not without significant debate) it seems to be a good time to share an insight into the current developments, particularly in respect of student accommodation. 

Student Eviction 

We now have confirmation that private purpose-built student accommodation (PBSA) providers will be excluded from the reforms, as long as such providers are members of the government-approved code. 

Although this should be welcome news; PBSA providers will still need to manage the consequences of the abolition of assured shorthold tenancies and the results of this will be worth keeping an eye on.

For non-PBSA accommodation, whether a landlord can use ground 4A will vary for houses in multiple occupation (HMO) or non-HMO properties. The government has confirmed that  landlords of student accommodation HMOs will be able to regain possession to relet their property for the next academic year by relying on ground 4A. Although non-HMOs will not qualify at the moment, it has been suggested this should apply to one or two-bedroom flats to allow for greater flexibility and fairer rent. 

It is worth noting that in order to serve a compliant section 4A notice, a landlord must have informed the tenant before the tenancy starts that it intends to use this ground. The landlord must then give the tenant at least 4 months’ notice of repossession and this must take effect between 1 June and 30 September, to align with the university academic calendar. For tenancies with terms that started prior to the commencement of the act, the landlord must provide a written statement to the tenant within one month of the passing of the legislation of its intention to use the ground and follow the same 4 month notice procedure as above. 

Advance Rent 

Concerns have again been raised about the effect of banning upfront rent payments, which will likely have the biggest impact on international students, as well as self-employed individuals and people with poor credit histories. 

If a tenant does not have the option to provide upfront payments, they may struggle to secure rental properties, which could leave student tenants with no accommodation during their studies in the UK. 

What next? 

Landlords have been lobbying consistently from the outset of the Bill, leading also to proposals for landlords of student accommodation to retain fixed term lettings with suggested conditions that the landlord and tenant must both agree with the fixed term and the tenant pays 12 months’ rent in advance if agreed. It is not expected that many amendments will be accepted as it does appear the Government is determined to push the bill through with only minor amendment. 

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